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INVESTMENT BANKS

INVESTMENT BANKS. GROUP MEMBERS SIDRA ALEEM AILIA BATOOL GHAZI REHMAN ZAID HASSAN. INVESTMENT BANK. financial institution that assists or helps corporations and governments to raise capital by underwriting and acting as the agent in the issuance of securities.

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INVESTMENT BANKS

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  1. INVESTMENT BANKS GROUP MEMBERS SIDRA ALEEM AILIA BATOOL GHAZI REHMAN ZAID HASSAN

  2. INVESTMENT BANK • financial institution that assists or helps corporations and governments to raise capital by underwriting and acting as the agent in the issuance of securities. • assists companies involved in mergers and acquisitions and derivatives • Investment banks do not take deposits.

  3. Investment Banking Division • Industry coverage groups: focus on a specific industry such as Healthcare or Technology, and maintain relationships with corporations within the industry to bring in business for a bank. • Product coverage groups: focus on financial products, such as Mergers & Acquisitions, Financial Sponsors, and Leveraged Finance.

  4. SECURITIES UNDERWRITING • Private placement securities issue placed with one of a few large institutional investors • Public placement may be underwritten on a best efforts or firm commitment basis and offered to the public.

  5. Cash Management Securities firms and investment banks offer bank deposit-like cashmanagement accounts(CMAs) to individual investors

  6. Services offered by investment banks V/S Securities Firms Investment Banks • Service entities who wish to raise funds through sales of debt and equity securities, including corporations or governments; services include • Originating, underwriting, and placing securities in money and capital markets • The wholesale side of the business

  7. Securities Firms • Services involve assistance in the trading of securities in the secondary markets (brokerage services or market making) • Purchase, sale, and brokerage of securities • The retail side of the business

  8. ORGANIZATIONAL STRUCTURES MAIN ACTIVITIES • Investment banks offer services to both corporations issuing securities and investors buying securities. • Investment bankers offer information on when and how to place their securities in the market for corporations. • It offers protection against unsafe securities for investors.

  9. FRONT OFFICE Sales and trading • Large investment bank's primary function is buying and selling products. Market making • In this trader will buy and sell financial products to get incremental amount of money on each trade. • Involves the creation of a secondary market in an asset by a securities firm or investment bank

  10. FRONT OFFICE Research • This is the division which reviews companies and write reports about their prospects, often with “buy” or “sell” ratings. Investment management • Professional management of various securities (shares, bonds, etc.) and other assets (e.g., real estate), to meet specified investment goals for the benefit of investors is investment management. Merchant banking • It is a private equity activity of investment banks

  11. Middle office • Risk management • It analyzes the market and credit risk that traders are taking onto the balance sheet in conducting daily trades. 2) Corporate treasury • It is responsible for an investment bank’s capital structure management, funding and liquidity risk monitoring. 3) Financial control • It tracks and analyzes the capital flows of the firm.

  12. Back office • Operations • involves data-checking trades that have been conducted. 2) Technology • investment bank has considerable amounts of in-house software, created by the technology team, who are also responsible for technical support. • Technology has changed considerably in the last few years as more sales and trading desks are using electronic trading.

  13. Investment banks in Pakistan • There are 35 banks listed on Karachi Stock Exchange (KSE), with a total paid-up capital of Rs. 10462.39 million. • Out of these 16 are investments banks with a paid-up capital of Rs. 3730.842 million, • 13 are commercial banks having Rs. 6218.92 million as paid-up capital, • and the remaining 6 banks are engaged in the securities business with a paid-up capital of Rs. 512.628 million.

  14. Investment banks in Pakistan • Under SECP investment banks are classified as Non-Banking Financial Companies (NBFCs) and are regulated by the NBFC (Establishment and Regulation) Rules of 2003 which provide an enhanced framework of operations for investment banks and have considerably widened their scope of business.

  15. Investment banks Atlas Investment Bank Limited Asset Investment Bank Limited Al-Towfeeq Investment Bank Limited Crescent Investment Bank Limited Escorts Investment Bank Limited Fidelity Investment Bank LimitedFirst International Investment Bank Limited, KarachiFranklin Investment Bank LimitedIslamic Investment Bank, Peshawar

  16. CONCLUSION

  17. ANY QUESTIONS

  18. THANK YOU

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